South Korea's NHN KCP is partnering with Avalanche to build a payment-focused Layer 1 network.

NHN KCP and Ava Labs Partner on Payment-Focused Layer 1 Network

South Korean payment service provider NHN KCP has signed an MOU with Ava Labs to build a payment-focused Layer 1 network using Ava Cloud. The network will focus on three key areas: sub-second payment finality, on-chain transaction data encryption, and customizable merchant payment infrastructure.

The partners will also explore tokenized deposit models, multi-stablecoin settlement structures, and cross-border payment opportunities. Justin Kim, head of Ava Labs Asia, said the L1 mainnet launch timeline will largely depend on progress in South Korea's crypto regulatory framework.